ON ANNUITIES UNDER RANDOM RATES OF INTEREST WITH
PAYMENTS VARYING IN ARITHMETIC AND GEOMETRIC
PROGRESSION
K. Burnecki
A. Marciniuk
A. Weron
Abstract: In the article we consider accumulated values of annuities-certain with yearly
payments with independent random interest rates. We focus on general annuities with
payments varying in arithmetic and geometric progression which are important varying
annuities. We derive, via recursive relationships, mean and variance formulae of the final
values of the annuities. Special cases of our results correct main outcome of Zaks [4].
2000 AMS Mathematics Subject Classification: 91B28, 91B70.
Key words and phrases: Annuity, accumulated value, random interest rate.